SCH Group Berhad IPO

SCH Group Bhd, a Quarry industrial products company is scheduled to be listed in ACE Market of Bursa Malaysia on 13th February 2014.

The Initial Public Offering (IPO) consists of public issues of 90.7 million new ordinary shares and offer for sale of 33 million shares at an IPO price of RM0.23 per share and par value RM0.10.

Out of this, 13 million shares are allocated for application by Malaysian public and 13 million shares reserved for the eligible directors, employees and business associates or person contributed to the company. The remaining shares are for private placement.

The IPO exercise is expected to raise RM20.86 million and the proceeds will be used for capital expenditures (10 million), general working capital (8.8 million) and payment of listing expenses (RM2 million).

SCH Group has been in the quarry equipment and machinery market for more than 25 years and the group is a prime supplier of quarry products and machinery parts to big-cap companies such as YTL Group and LaFarge Malaysia Bhd.

The company intends to venture into the provision of quarry engineering services, aimed directly at serving quarry operators. The range of quarry engineering services that SCH intends to provide includes designing, fabrication, installation and commissioning of quarry plants.

The group has established a distribution network that covers the major regions in Malaysia and has strategically located subsidiaries in Selangor, Penang, Pahang, Sabah, Johor, Sarawak and Singapore.

As part of our future plans, the group aims to grow its presence in both domestic and overseas markets, particularly Indonesia, Thailand, Vietnam, Myanmar and Cambodia within 12 months after the listing.

M&A Securities is the sole adviser, sponsor, underwriter and placement agent of the IPO.

For those who are interested in SCH Group IPO, you may subscribe at ATM machines or via Internet Banking. The subscription period is opened until 27th January 2014 at 5pm. Tentative balloting date is on 29th January 2014 while the allotment date is on 7th February 2014.